BILL NUMBER: AB 1080	CHAPTERED  09/24/00

	CHAPTER   603
	FILED WITH SECRETARY OF STATE   SEPTEMBER 24, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 23, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 30, 2000
	AMENDED IN SENATE   JULY 3, 2000
	AMENDED IN SENATE   APRIL 24, 2000
	AMENDED IN SENATE   JULY 1, 1999
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   MAY 19, 1999
	AMENDED IN ASSEMBLY   APRIL 28, 1999

INTRODUCED BY   Assembly Members Villaraigosa and Davis

                        FEBRUARY 25, 1999

   An act to amend Section 17052.2 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1080, Villaraigosa.  Personal income taxes:  teacher tax
credit.
   The Personal Income Tax Law authorizes various credits against the
tax imposed by that law, including a credit, for each taxable year
beginning on or after January 1, 2000, to credentialed teachers in an
amount equal to the lesser of (1) the applicable of specified
amounts based upon years of service as a teacher, or (2) 50% of the
amount of tax imposed upon the taxpayer's income that is attributable
to service as a teacher.
   This bill would clarify the calculation of this credit by revising
and recasting those provisions setting forth the second alternative
measurement of the amount of the credit.
   This bill would provide that these changes apply to taxable years
beginning on or after January 1, 2000.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 17052.2 of the Revenue and Taxation Code, as
added by Chapter 75 of the Statutes of 2000, is amended to read:
   17052.2.  (a) For each taxable year beginning on or after January
1, 2000, there shall be allowed as a credit against the "net tax" (as
defined by Section 17039) to a credentialed teacher an amount equal
to the amount determined in subdivision (b).
   (b) The amount of the credit shall be the lesser of the amounts
computed under paragraph (1) or (2):
   (1) In the case of any credentialed teacher who has, as of the
last day of the taxable year:
   (A) Completed at least four but less than six years of service as
a credentialed teacher, the credit shall be two hundred fifty dollars
($250).
   (B) Completed at least six but less than 11 years of service as a
credentialed teacher, the credit shall be five hundred dollars
($500).
   (C) Completed at least 11 but less than 20 years of service as a
credentialed teacher, the credit shall be one thousand dollars
($1,000).
   (D) Completed 20 or more years of service as a credentialed
teacher, the credit shall be one thousand five hundred dollars
($1,500).
   (E) For purposes of determining years of service, years of service
performed as a teacher in a qualified education institution, which
otherwise meets the criteria specified in subdivision (d) except that
the qualified education institution is not located in this state, in
another state shall qualify for each year the teacher was
credentialed by the public education agency in that state.
   (2) Fifty percent of the amount determined as follows:
   (A) Divide the amount received by the taxpayer as wages and salary
for services as a credentialed teacher, as defined in paragraph (3)
of subdivision (c), by the taxpayer's total adjusted gross income
from all sources.
   (B) Multiply the taxpayer's total tax, as defined in paragraph (4)
of subdivision (c), by a ratio, not to exceed 1.00, that is
otherwise equal to the ratio determined for the taxpayer under
subparagraph (A).
   (c) For purposes of this section, all of the following definitions
apply:
   (1) "Credentialed teacher" means a person who holds a preliminary
or professional clear credential as determined by the Commission on
Teacher Credentialing pursuant to Article 1 (commencing with Section
44200) of Chapter 2 of Part 25 of Division 2 of Title 2 of the
Education Code and who teaches at a qualifying educational
institution.
   (2) "Qualifying educational institution" means any elementary,
secondary, or vocational-technical school located in this state
providing education for kindergarten, grades 1 to 12, inclusive, or
any part thereof.  "Qualifying educational institution" includes an
agency or instrumentality of the federal government providing
education for grades kindergarten, grades 1 to 12, inclusive, or any
part thereof, at any location within this state, including an Indian
reservation or a military installation located within the
geographical borders of this state, where a credentialed teacher is
employed by the federal government or an agency or instrumentality
thereof.  "Qualifying educational institution" includes any
elementary, secondary, or vocational technical school located in
California, that files an affidavit pursuant to Section 33190 and
33191 of the Education Code, and provides education for kindergarten
and grades 1 to 12, inclusive, or any part thereof.
   (3) "Wages and salaries for services as a credentialed teacher"
includes only those amounts received with respect to services
performed as a credentialed teacher, but does not include pensions or
other deferred compensation.
   (4) "Total tax" means the tax imposed under this part for the
taxable year, before the application under Section 19007 of any
payment of estimated tax or any installment thereof, less all credits
allowed for the taxable year except for the following:
   (A) The credit allowed under this section.
   (B) The credit allowed under Section 17061 (relating to refunds
under the Unemployment Insurance Code).
   (C) The credit allowed under Section 19002 (relating to tax
withholding).
   (D) Any refundable credit that is allowed under this part.
  SEC. 2.  The amendments made to Section 17052.2 of the Revenue and
Taxation Code by this act shall apply to taxable years beginning on
or after January 1, 2000.
